Termination of Bogoso and Prestea mining leases will be strongly disputed – Blue Gold

Blue Gold Bogoso Prestea Limited has refuted reports of the termination of the mining leases of FGR Bogoso Prestea Limited by the Ministry of Lands and Natural Resources as of September 3, 2024.

In a statement issued by the new operators of the Bogoso and Prestea mines, it was mentioned that the company has not received any communication regarding the said termination.

The statement further emphasised that the mining leases remain fully valid and are the property of the company.

The company also assured workers on site “to remain calm and go about their duties as the process of termination of a mining lease is subject to prescribed legal procedures to protect the interests of all stakeholders and ensure that due process is followed.”

This development comes after the Minister of Lands and Natural Resources, Samuel Abu Jinapor, issued a statement on September 18, 2024, explaining that the “decision to terminate the mining leases was taken after reviewing various reports from the Minerals Commission as well as a Ministerial Committee constituted to review the operations of the company and after extensive engagement with all stakeholders involved in this matter.”

The takeover of the mines by Blue Gold follows operational issues faced by Future Global Resources (FGR), which has been suffering from declining performances since 2017, accumulating over $200 million in losses, much of which is owed to local suppliers, government agencies, and its workforce.

FGR owned 90% of the project, with the Government of Ghana holding the remaining 10% interest.

The Bogoso-Prestea mine has a proud history dating back to 1912, during which time it has produced over 9 million ounces of gold.

SSD/MA

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